Budget Speech

Securities Market

81. Undaunted by challenges from external factors, the Hong Kong stock market recorded an average daily turnover of $129.5 billion last year, representing an increase of 49 per cent over the year before.  A total of $397.5 billion was raised through initial public offerings (IPO) during the same period, representing an increase of 27 per cent over the year before, and among which, over 90 per cent of the funds was raised by Mainland enterprises.  Not only is Hong Kong a preferred international fundraising platform, it is also the world's second largest fundraising hub for biotechnology companies.  There have been 43 companies listed under the new listing regime in Hong Kong since its introduction, raising a total of over $420 billion, which accounts for about 40 per cent of total IPO funds raised in the period.  These companies have a combined market capitalisation of over $11 trillion, accounting for about a quarter of the current total market capitalisation in Hong Kong.  They include ten China Concept Stock companies returning to Hong Kong for secondary listing and 31 pre-revenue or pre-profit biotechnology companies.  Our earlier efforts in enhancing the listing regime are gradually delivering results.

82. The HKEX will review the overall secondary listing regime, including whether Greater China companies with non- weighted voting rights structures have to be companies in the field of I&T in order to seek secondary listing in Hong Kong through the new concessionary route, as well as their corresponding market capitalisation requirements.  The HKEX will consult the market in due course.

83. Stock Connect expands the depth and breadth of the capital market in Hong Kong, and is in line with our country's financial development strategy.  We will seek to expand its capacity continuously, including the progressive inclusion of ETF and other types of assets as well as expansion of the scope of eligible securities.  With international investors' increased participation in the A-share market through Stock Connect, there is a growing demand for using A-shares index futures to hedge market risk.  The HKEX will accelerate the preparatory work for the launch of MSCI China A-Index Futures contract.